Technology has advanced with the spread of internet services. Statistics by the United States have estimated that internet facilities have been made available to over a third of the total world population and, in the same vein, access to mobile phones has been rendered to about 85 percent of the population. Crowdfunding finds widespread support via internet platforms and is gaining momentum as a means to empower people and businesses hitherto unable to access banking or access limited facilities therefrom. Today, it has become a mechanism for raising funds to build multi-billion-dollar industries. It is said that the difficulties encountered while struggling to source funds by newly-formed businesses following the 2018 global financial meltdown led to the emergence of crowdfunding. The objective of this research is to present a discourse on how crowdfunding can be facilitated leveraging on blockchain technology. This is a qualitative research where data from literature on the subject matter is analysed and conclusions derived. Outcome of this research revealed that integrating blockchain technology with crowdfunding is possible and benefits all parties involved in the transaction. This integration reduces transaction cost and, from governance perspective, provides certainty and trust to the system and mitigates risk for the parties.
Blockchain technology, Crowdfunding, Islamic finance
Muneeza, Aishath and Mustapha, Zakariya. (2019). Application of blockchain technology in crowdfunding to fuel the rise of the rest globally. Sahulat, 7 (1), pp. 9-26.
Sahulat Microfinance Society